Classical economists believed that economic slowdowns are self-correcting.

Answer the following statement true (T) or false (F)


True

Economics

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When a pharmaceutical company introduces a new drug, its research and development costs are ________, and the cost of the chemicals used in manufacturing the drug are ________.

A. start-up costs; variable costs B. start-up costs; fixed costs C. marginal costs; variable costs D. fixed costs; start-up costs

Economics

Assume a consumption function of the following form: C = 100 + .8Y. If income is equal to $3,000, then consumption is

A) $2,400. B) $2,500. C) $2,900. D) $3,100.

Economics

The Friedman Rule is optimal because

A) households would be able to buy more as prices decrease. B) the central bank has better control of the money supply. C) money is neutral. D) households are indifferent between holding bonds and money.

Economics

Exhibit 8-4 Marginal cost and revenue for a firm UnitQuantity Marginal Cost Marginal Revenue 12 $  5 $9 13     6   9 14     7   9 15     8   9 16     9   9 17   10   9 In Exhibit 8-4, what is this firm's profit-maximizing rate of output?

A. 13. B. 14. C. 15. D. 16.

Economics